Setback for Voda Idea, others as SC rejects AGR relief

The Supreme Court on Monday dismissed pleas by Bharti Airtel, Vodafone Idea, and Tata Teleservices seeking a waiver on interest, penalty, and interest on penalty, collectively amounting to over ₹80,000 crore, on pending adjusted gross revenue (AGR) dues.

- Krishna Yadav & Jatin Grover

A bench comprising Justices J.B. Pardiwala and R. Mahadevan called the petitions "shocking" and "misconceived," asserting that the relief sought was not legally tenable. "These are writ petitions filed by multinational telecom companies invoking Article 32 of the Constitution. We firmly believe they are misconceived. Dismissed," Justice Pardiwala said.

The court also rejected senior advocate Mukul Rohatgi's request to withdraw Vodafone Idea's petition, opting instead to dismiss it outright. Senior advocate Arvind Datar, appearing for Tata Teleservices, sought to be made a party in the matter, but the court dismissed Tata's plea as well.

However, the bench clarified that if the Centre decides to extend relief to the telecom companies, the court would not obstruct such a move. "If the government wants to help you, we are not coming in your way," Pardiwala said.

Rohatgi, representing Vodafone Idea, told the court that the government cannot help since it is 50% owner of the company, in the backdrop of the Supreme Court judgment in the AGR case.

Solicitor General Tushar Mehta, appearing for the Centre, said, "What we have said is that, in view of the judgment of the Lordships, we cannot examine [the relief sought], and it cannot be examined."

Following the news, shares of Vodafone Idea ended down 8.7% to ₹6.73 on the BSE, while Bharti Airtel ended up 0.2% to ₹1,817.40. Tata Teleservices was down 0.5% at ₹60.35.